Palampur is governed by the Palampur Municipal Corporation, a civic body established in 2020 to better manage the growing urban agglomeration. The corporation is divided into wards, each electing a councilor, with a Mayor serving as the head of the civic body. The municipal government is responsible for urban planning, sanitation, water supply, and local road maintenance.
At the state level, Palampur is represented by a Member of the Legislative Assembly (MLA) in the Himachal Pradesh Vidhan Sabha. Nationally, it falls under the Kangra Lok Sabha constituency. The town also hosts several state administrative offices and a significant military presence at the nearby Holta Cantonment.
